Silver Price Analysis: 200-SMA probes XAG/USD recovery around $22.00
- Silver struggles to extend Friday’s recovery from one-month low.
- Bullish MACD signals, weekly resistance break keeps buyers hopeful.
- One-month-old horizontal support challenges bears amid steady RSI.
Silver (XAG/USD) prices retreat from $22.00 during Monday’s Asian session, following the rollercoaster ride that ended with the heaviest daily gains in a week.
Although Friday’s corrective pullback from a one-month low enabled the bright metal to cross an immediate hurdle, now support around $21.85, the 200-SMA level near $22.10 seems to challenge bulls. Also challenging the quote’s upside momentum is the steady RSI (14) suggesting a continuation of a monthly trading range between 21.30 and 22.50.
That said, the metal’s latest weakness needs validation from the previous resistance line to retest the aforementioned trading range’s support, around $21.30.
Should XAG/USD bears conquer the $21.30 mark, a downward trajectory towards the $21.00 threshold and then to May’s low of $20.45 can’t be ruled out.
On the contrary, a sustained break of the 200-SMA level near $22.10 isn’t a strong welcome sign for the buyers as an upward sloping resistance line from May 27, near $22.55, could challenge the run-up.
In a case where silver prices rise beyond $22.55, early May’s swing high near $23.30 will gain the market’s attention.
Overall, silver prices are likely to witness a pullback towards testing the lower end of the immediate range.
Silver: Four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
